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    Equinox $1B Brazil mines sale to CMOC: portfolio and debt reset for mine planners

    January 27, 2026|

    Reviewed by Joe Ashwell

    Equinox $1B Brazil mines sale to CMOC: portfolio and debt reset for mine planners

    First reported on MINING.com

    30 Second Briefing

    Equinox Gold has closed the sale of its Aurizona, RDM and Bahia Complex (Santa Luz and Fazenda) mines in Brazil to a CMOC Group subsidiary for up to $1 billion, receiving $900 million in cash plus up to $115 million in production-linked payments due January 2027. Proceeds will fully repay a $500 million term loan, clear $300 million owed to Sprott and other obligations, and cut senior debt to about $580 million and net debt to $150 million, materially lowering interest costs. The streamlined portfolio now centres on Greenstone and Valentine, with a development pipeline targeting an extra 450,000–550,000 oz of annual gold output on top of 2026 guidance of 700,000–800,000 oz.

    Technical Brief

    • Transaction covers three producing Brazilian gold mines: Aurizona (Maranhão), RDM (Minas Gerais) and Bahia Complex.
    • Bahia Complex comprises the Santa Luz and Fazenda operations, both transferred under the CMOC subsidiary deal.
    • Equinox’s producing portfolio now limited to Greenstone, Valentine, Mesquite and El Limón/La Libertad operations.
    • Non‑producing pipeline assets retained include Castle Mountain (California) and Los Filos (Mexico) for staged development.
    • Senior debt reduced to about $580 million, with net debt cut to approximately $150 million post‑repayments.
    • BMO Capital Markets expects higher valuation multiples driven by concentration in North American gold assets.

    Our Take

    Within our 249 gold‑tagged pieces, most M&A activity has involved portfolio reshaping in Latin America rather than outright greenfield expansion, so Equinox Gold’s Brazil divestment to CMOC Group fits a pattern of operators concentrating capital on a smaller number of core assets such as Greenstone and Los Filos.

    CMOC Group’s move into Brazilian gold adds another Chinese player to Latin American precious metals alongside copper‑focused entrants, which is likely to increase competition for mid‑tier assets in jurisdictions like Maranhao, Minas Gerais and Bahia where permitting pathways are already established.

    The share price reaction around C$21.70 suggests equity markets are currently discounting near‑term production loss from Aurizona/RDM/Santa Luz more heavily than de‑risking benefits, a contrast with our coverage of smaller gold developers such as Rio2’s Fenix mine in Chile, where first‑pour milestones have tended to be rewarded more positively than balance‑sheet optimisation alone.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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